LH·SH Public Land Sale Proceeds Reach Approximately 100 Trillion Won

Public Land Supplied by Two Agencies Exceeds 50 Million㎡
Rep. Kim Du-kwan: "Should Consider Direct Implementation and Contracting Instead of Sale"

A panoramic view of Goyang Changneung District, where LH is conducting public land sales. [Image source=Yonhap News]

[Asia Economy Reporter Cha Wanyong] Over the past decade, the sale proceeds from public land sold by Korea Land and Housing Corporation (LH) and Seoul Housing Corporation (SH) have reached approximately 100 trillion won.

According to the office of Kim Doo-kwan, a member of the Democratic Party and the Land, Infrastructure and Transport Committee, over the past 10 years, LH supplied a total of 47,545,402㎡ of public land (supply amounting to 86.4817 trillion won), while SH supplied 2,592,976㎡ (supply amounting to 13.7443 trillion won). The total proceeds from the sale of public land by the two organizations exceed 100 trillion won.

Among the total 1,178 cases sold by LH over the past decade, about 560 cases, nearly half, are located in Gyeonggi-do. Due to the development of the administrative capital complex city, over 120 plots of land were supplied in Sejong City.

On the other hand, the supply of public land in regions outside the metropolitan area was minimal, with 22 cases in Gyeongbuk, 21 in Gangwon, 18 in Jeonbuk, and 19 in Jeonnam. The concentration of public land development in the metropolitan and large city areas appears to reflect LH’s consideration of the profitability of the land.

As the issue of mass bidding recently arose, the Ministry of Land, Infrastructure and Transport has introduced measures such as the one-company-one-plot system. However, as long as public land sales continue, competition among construction companies to acquire public land through various methods cannot be eliminated. This is because developing and selling public land guarantees significant profits for construction companies.

Assemblyman Kim Doo-kwan pointed out, “Since construction companies can gain double or triple profits from construction and sales once they acquire land, they resort to mass bidding and even illegal or improper methods to obtain land.” He added, “LH should consider not just developing and selling land but directly implementing projects and contracting construction separately to each construction company.”